State of Illinois
91st General Assembly
Legislation

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91_SB0025eng

 
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 1        AN ACT concerning job training.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1.  Short Title.  This Act may be  cited  as  the
 5    Illinois Industrial New Jobs Training Act.

 6        Section 5.  Definitions.  As used in this Act, unless the
 7    context otherwise requires:
 8        "Agreement"  is  the agreement between a new employer, an
 9    educational intermediary, and the Department of Commerce  and
10    Community Affairs.
11        "Community  College"  is  a community college established
12    under the Public Community College Act.
13        "Department" is the Department of Commerce and  Community
14    Affairs.
15        "Educational   intermediary"  means  a  school  district,
16    community college  established  under  the  Public  Community
17    College   Act,  a  private  business  and  vocational  school
18    certified by the State Board of Education as provided by  the
19    Private  Business  and Vocational Schools Act, the University
20    of Illinois,  Southern  Illinois  University,  Chicago  State
21    University,  Eastern  Illinois  University,  Governors  State
22    University,  Illinois State University, Northeastern Illinois
23    University, Northern Illinois  University,  Western  Illinois
24    University,  and  any  other  private  institution  of higher
25    education that offers degrees and instruction above the  high
26    school level that has a campus and related facilities located
27    within the State.
28        "Employee" means a person employed in a new job.
29        "New  Employer" is the business providing new jobs within
30    the State and who has entered  into  an  agreement  with  the
31    Department.
 
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 1        "Industry"  means  a  business  engaged  in interstate or
 2    intrastate  commerce  for  the  purpose   of   manufacturing,
 3    processing,  or  assembling products, conducting research and
 4    development, or providing services  in  interstate  commerce,
 5    but excludes all health and professional services and retail,
 6    except  for retail or catalog distribution centers, retail or
 7    catalog warehousing, retail or credit facilities,  retail  or
 8    catalog   operations   offices,   and   retail   or   catalog
 9    headquarters  facilities.   "Industry"  does  not  include  a
10    business  that  closes or substantially reduces its operation
11    in one area of the State and relocates substantially the same
12    operation in another area of the State.  This provision  does
13    not  prohibit  a  business  from  expanding its operations in
14    another area of the State provided that  existing  operations
15    of  a  similar nature are not closed or substantially reduced
16    in another area of the State.
17        "New job" means a job in a new or expanding industry  but
18    does  not  include  jobs  of  recalled workers, or part-time,
19    contractual, or temporary workers, replacement jobs or  other
20    jobs  that  formerly existed in the industry within the State
21    of Illinois.
22        "New  jobs  training  program"  or  "program"  means  the
23    project   or   projects   established   by   an   educational
24    intermediary for the creation of jobs by providing  education
25    and  training  of  workers  for new jobs for new or expanding
26    industry within the State.
27        "Program costs" means all the  necessary  and  incidental
28    costs of providing program services and training.
29        "Program  services  and  training"  includes,  but is not
30    limited to the following:
31             (a)  New  jobs   training   and   customized   skill
32        training;
33             (b)  Adult   basic   education   and   job   related
34        instruction;
 
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 1             (c)  Vocational  and  skill-assessment  services and
 2        testing;
 3             (d)  Rental of training facilities and equipment and
 4        purchase of non-depreciable materials and supplies;
 5             (e)  On-the-job    training,    including    quality
 6        improvement training;
 7             (f)  Administrative  expenses  for  the   new   jobs
 8        training;
 9             (g)  Subcontracted  services  with other educational
10        intermediaries, other federal, State or  local  agencies;
11        and
12             (h)  Contracted or professional services.
13        "Project"  means  a  training  arrangement  that  is  the
14    subject  of an agreement entered into between the Department,
15    an educational intermediary, and a new  employer  to  provide
16    program services.

17        Section  10.   Supplemental  support.   Any funding for a
18    project under  this  Act  may  be  supplemental  to  any  job
19    training  grants or programs offered by the Department to new
20    employers as provided under the Civil Administrative Code  of
21    Illinois  or  any  other  Act the Department is authorized to
22    administer for job training, except that funding  under  this
23    Act  shall  not  be  provided  if,  in  the  opinion  of  the
24    Department,  the  applicant  has  received  or  is  likely to
25    receive  funding  from  a  source  other  than  through   the
26    provisions  of  this  Act or if the funding under this Act is
27    duplicative of any  other  source  of  funding  that  may  be
28    available to the applicant.

29        Section 15.  Priority of educational intermediaries.  For
30    projects that are funded under this Act, the Department shall
31    give  priority to those projects involving community colleges
32    established under the Public Community  College  Act,  unless
 
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 1    circumstances warrant otherwise.

 2        Section 20.  Agreements.
 3        (a)  Agreements   entered  into  by  the  Department,  an
 4    educational intermediary, and a new employer shall be subject
 5    to rules adopted  by  the  Department.   An  agreement  shall
 6    provide   for   program   services  to  be  provided  by  the
 7    educational  intermediary  for  the  job  training   of   the
 8    employees  of  the new employer and the program costs for the
 9    training of employees for a new job.    The  funding  of  the
10    training  may  be  paid  either  in  whole  or  part  by  the
11    following:
12             (1)  The Industrial New Jobs Training Fund;
13             (2)  Tuition,  fees,  or special charges paid by the
14        new employer;
15             (3)  Any supplemental funds provided  by  any  other
16        government  agency,  except  any  funds  appropriated for
17        adult education programs under Section  10-22.20  of  the
18        School  Code,  or  any supplemental funds provided by any
19        other financial institution or entity; or
20             (4)  The  incremental  increase  in   property   tax
21        revenue  received by the educational intermediary from an
22        increase in the equalized assessed valuation of  property
23        attributable   to   the  new  jobs  training  program  as
24        determined by the Department from information provided by
25        the county clerk.
26        (b)  The agreement shall specify the program services  to
27    be offered by the educational intermediary.
28        (c)  The  agreement shall limit any administrative costs,
29    including indirect costs, of the educational intermediary  to
30    no  greater  than  10%  of  the  total  cost  of job training
31    program.    For   the   purposes    of    this    subsection,
32    "administrative  costs"  shall  be  the  operational costs of
33    administering a  job  training  program  by  the  educational
 
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 1    intermediary, which shall include, but may not be limited to,
 2    record  keeping,  instructional  oversight  by a non-teaching
 3    administrator, and other activities not directly  related  to
 4    job training instruction.
 5        (d)  Prior  to entering into an agreement, the Department
 6    and the new employer shall have  the  right  to  inspect  and
 7    review   the  job  training  facilities  of  the  educational
 8    intermediary to determine the capabilities of  providing  the
 9    training needed by the new employer.
10        (e)  An   agreement   shall  include  the  right  of  the
11    Department to request  from  a  new  employer  the  following
12    information prior to the approval of an agreement:
13             (1)  how  the  new  employer  is  legally organized,
14        whether as  a  corporation,  limited  liability  company,
15        partnership, or other type of legal entity under the laws
16        of this State, any other state, or a foreign nation;
17             (2)  a  listing of the officers and principal owners
18        of the new employer;
19             (3)  an  audited  financial  statement  of  the  new
20        employer; and
21             (4)  any other information that the  Department  may
22        require consistent with the purposes of this Act.
23        (f)  All   agreements  upon  execution  shall  be  public
24    documents  and  available   for   public   inspection.    Any
25    proprietary information affecting a product or service of the
26    new  employer,  as  relating  to the agreement, may be exempt
27    from  the  disclosure  requirement  upon  approval   of   the
28    Department.

29        Section  25.   Worker protection.  No agreement initiated
30    under this Act shall in any way diminish or deny  the  rights
31    of  employees  subject to an agreement to avail themselves of
32    the Workers'  Compensation  Act,  the  Workers'  Occupational
33    Diseases  Act,  the  Unemployment  Insurance Act, the Minimum
 
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 1    Wage Law, or any other law  of  this  State  or  the  federal
 2    government.

 3        Section  30.  Annual report.  The Department shall report
 4    annually to the Governor and  the  General  Assembly  on  the
 5    activities of the Department under this Act.

 6        Section  35.   Receipts  and  reimbursements.   Any money
 7    received by the  Department  as  reimbursement  for  training
 8    expenses, unused training funds, and any other receipts shall
 9    be deposited into the Industrial New Jobs Training Fund.

10        Section 40.  Funding.  Funds shall be appropriated to the
11    Department  as  may  be necessary for administrative expenses
12    related to the implementation of this Act.

13        Section 45.  The Industrial New Jobs Training Fund.   All
14    amounts  withheld  from new employees, as provided in Section
15    701.2 of the Illinois Income Tax Act, shall be deposited into
16    the Industrial New Jobs Training Fund, which is created as  a
17    special  fund  in  the  State  treasury.   The  Fund shall be
18    administered  by  the  Department.   The   Department   shall
19    distribute  to educational intermediaries the funds necessary
20    to implement an agreement as provided in Section 20  of  this
21    Act.      Amounts  deposited  into  the  Fund  in  excess  of
22    $50,000,000 shall be transferred from the Fund to the General
23    Revenue Fund.  Any accrued interest on  moneys  in  the  Fund
24    shall  be  deposited into the General Revenue Fund. A minimum
25    balance of at least $10,000,000 shall be  maintained  in  the
26    Industrial  New  Jobs  Training  Fund at all times unless the
27    Governor authorizes a transfer from the Fund to  the  General
28    Revenue  Fund.   In  a  calendar  year  in  which there is no
29    increase in the number of new jobs or there is a decrease  in
30    the  number  of  jobs  from  the  previous calendar year, the
 
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 1    Governor may transfer to the Fund from  the  General  Revenue
 2    Fund  an amount sufficient to conduct job training under this
 3    Act  or  may  authorize  a  waiver  of  the  minimum  balance
 4    requirement.

 5        Section 50.  Notes.  Subject to approval of the Governor,
 6    the Department of Commerce and Community Affairs may issue  a
 7    maximum  of  $10,000,000  in  notes  for  one  year beginning
 8    January 1, 2000 for the purposes  of  this  Act.   The  notes
 9    shall  be  retired  with  funds  from the Industrial New Jobs
10    Training Fund, and the debt payments on the notes shall  have
11    priority  over any other expenditure made under the Act.  The
12    notes shall be payable within 10 years  from  their  date  of
13    issue.  The Department shall file a report with the Secretary
14    of  the  Senate and the Clerk of the House of Representatives
15    in January of each year that  details  the  amount  of  notes
16    issued  and  the amount of debt payments on the notes for the
17    previous calendar year.

18        Section 105.  The State Finance Act is amended by  adding
19    Section 5.490 as follows:

20        (30 ILCS 105/5.490 new)
21        Sec. 5.490.  The Industrial New Jobs Training Fund.

22        Section  110.  The  Illinois Income Tax Act is amended by
23    adding Section 701.2 as follows:

24        (35 ILCS 5/701.2 new)
25        Sec.   701.2.    Withholding    from    new    employees.
26    Notwithstanding  any  provision  of  law to the contrary, the
27    Department  shall  deposit  into  the  Industrial  New   Jobs
28    Training  Fund  an amount equal to all amounts withheld under
29    Section 701 from a new employee  of  an  existing  or  a  new
 
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 1    business  for  a period of up to 10 years after that employee
 2    is hired.  For purposes of this  Section,  a  "new  employee"
 3    means  an  employee  of  a  new  employer  and all additional
 4    employees hired by a new employer  of  an  existing  business
 5    that were not reported to the Department as of December 31 of
 6    the  previous  year.   The  Department  shall  adopt rules to
 7    implement the provisions of this Section  and  shall  consult
 8    with  the  Department  of  Employment Security concerning the
 9    adoption of rules  relating  to  the  definition  of  a  "new
10    employee".

11        Section  99.   Effective  date.   This  Act  takes effect
12    January 1, 2000.

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